The British American Investment Company limited will be going to the market today (Tuesday July 12th 2011) to raise Ksh5.58 billion through issuance of 650 million new ordinary shares at sh9 (nine) per share.
Addressing members of the Association of Kenya Insurers British American Investment Company Chairman Nicholas Ashford- Hodges said the fund raised would be used to boost the company’s operations in Kenya and to expand to the regional markets.
“This IPO will give British-American an opportunity to increase the scope of its operations and widen its footprint. Having recently opened operations in Uganda, the company’s strategic intent is to spread its wings even further to the rest of Eastern Africa and the next step will be to open offices in Tanzania, Rwanda and Southern Sudan,” said Mr Ashford- Hodges.
The British American Investment Company Limited Group Managing Director Benson Wairegi said that in addition to regional expansion, the company is also keen to take advantage of emerging opportunities through innovative products and distribution channels such as microinsurance and bancassurance.
“We seek to fundamentally redefine the scale and scope of the insurance sector in Kenya and the wider region. We will tap the economic potential nascent in the newly created counties by building on our core distribution strengths, in particular our sales force presently one thousand strong and intended to be expanded considerably further. Our established model of scale, reach and multi-layered selling will also be extended to the retail market and SMEs in the wider geographical region,” said Wairegi.
Mr. Wairegi continued: “We believe the offer price of Ksh9 is affordable and will appeal to many investors. Whilst the Group is already over 60% owned by Kenyan investors, this IPO will reinforce its position as a truly Kenyan financial institution. I therefore invite you to join us as a shareholder of this great company.”
The offer which will be officially launch by the Prime Minister Raila Odinga today at the Norfolk Hotel closes on August 5th.
The offer will be opened to the east African retail investors for whom 30% of the shares have been allocated. Foreign investors have also been allocated 30% of the shares with 37% reserved for institutional investors. The remaining 3% has been reserved for Employee, Agents and Individual Life Policy Holders.